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The mortgage loan closing (or settlement) is the final step to
official ownership of your new house. Even though you have a
signed purchase contract and your loan request has been
approved, you have no rights to the property, including access,
until the legal title to the property is transferred to you and
the loan is closed.
Every area of the country has its own unique closing customs.
Your REALTOR® can guide you through this process and make sure
everything flows together smoothly.
At closing, you will sign the mortgage loan documents and pay
your closing costs, the seller will execute the deed to the
property, and the closing agent will record the necessary
instruments to give you legal ownership of the property.
Closing costs vary widely depending on your new home’s
price tag, location and other factors. Overall, you can expect
to pay between 1 and 3 percent of the sales price.
As soon as you receive your commitment letter from your
lender, you should confirm the actual date of loan closing.
Usually your real estate agent, lender and closing agent
coordinate a date with you. You want to make sure that closing
takes place before your loan commitment expires and before any
rate lock agreement expires. The closing date also has to allow
adequate time to assemble all of the required documentation.
There are standard documents and exhibits that are commonly
required for a loan closing. Some of these will be your
responsibility. Some of these will be the responsibility of
other parties to the transaction, such as the seller and lender.
Title Insurance Policy
Homeowner's
Insurance
Survey
or Plot Plan
Water
& Sewer Certification
Flood
Insurance
Certificate
of Occupancy or Building Code Compliance Letter
Final
Walk Through
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